| Lee Kranefuss | |
|---|---|
| Born | Lee Thomas Kranefuss September 27, 1961 |
| Education | BSEE, Cornell University (1984); MBA, Wharton (1991) |
| Home town | Endicott, NY |
| Board member of | Parker Center for Investment Research, ICI Board of Governors |
Lee Thomas Kranefuss (born September 27, 1961) is an American businessman, investment manager, corporate adviser and entrepreneur.
Kranefuss started and ran the iShares series of exchange-traded funds (ETFs) for Barclays Global Investors (BGI), the asset management arm of Britain’s Barclays Bank. BGI was acquired by BlackRock in December 2009. Kranefuss saw the opportunity to commercialize and grow the extant but immaterial ETF industry that had developed by the time iShares was launched in 2000, and is credited with driving ETFs from a novelty product to a mainstream investment choice through aggressive education and promotion of the iShares line. By the end of 2009, global ETF assets exceeded a trillion dollars globally, with nearly half the total in the iShares funds.[1]
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In 1997 Kranefuss joined Barclays Global Investors (BGI), the company that invented index funds. BGI was then the world’s largest manager of institutional assets. Kranefuss joined as Director of Strategy & Corporate Development. In that role Kranefuss conceived of the plan for the iShares business. Believing that an aggressive education and sales program would be needed to explain the benefits of ETFs to investors, iShares was launched in 2000 with an intensive marketing effort behind the initial 40 new iShares funds to be launched in the U.S. — more than doubling the number of products then available in the market.[2]
In 2005, after the departure of co-CEO Andrew Skirton, Kranefuss was promoted to the Executive Committee of BGI, and also put in charge of BGI’s Institutional Indexing, Cash Management, Securities Lending, and related businesses – collectively over one trillion dollars in assets, more than 75% of BGI’s assets under management, and 42% of the company’s profits.[3] By the end of 2007 iShares had surpassed $400B in global assets, with Kranefuss overseeing nearly 80% of BGI’s assets and over 60% of BGI’s profits.[4]
In April 2009, it was reported that Barclays had signed a deal to sell iShares to the European private equity firm CVC Capital Partners for $4.4B.[5] Kranefuss announced at the time he would be stepping away from daily management duties to assume the title of Vice Chairman of iShares, focusing on the transition process.[6][7] However, during a go-shop period in the CVC contract, Barclays reportedly received significant interest to buy all of BGI — including iShares — by numerous parties. [8] Subsequently, New York money manager BlackRock out-bid all others and purchased BGI,[9] closing the deal in late in the year.
Though having grown iShares by extensive distribution over the decade[10] — into a global fund family with over $500B in assets, and the 4th largest fund family in the U.S. — it was reported in early 2010 that Kranefuss (on reportedly good terms with BlackRock senior management) would continue only through an integration period.[11] He left BlackRock at the end of April 2010.[12]
Kranefuss is currently focused on corporate advisory an principal investing in the asset management industry. In September 2011, he and fromer iShares Colleague Rory Tobin announced the formation of ETF Opportunity Partners LLP, with an eye to acquiring ETF businesses (initially in Europe)[13]. He and Tobin penned an opinion piece in the Financial Times explaning their perspective the same month [14].
Kranefuss also has an active interest in corporate sustainability, and has invested in that area. He appeared at the 2010 Fortune Brainstorm Green conference tto talk about that.[15]
Kranefuss’ past and present affiliations include:
Kranefuss was born in Endicott, New York. He lives in the San Francisco Bay area in Marin County.
